Which of the Following Is NOT a Valid Reason for Discounting

question 53

Multiple Choice

Which of the following is NOT a valid reason for discounting the importance of stable foreign currency in evaluation international investment alternatives?

• A)A devaluation in one country is usually offset by an increase in value in another
• B)The overall effect of a devaluation in the economy of the country is insignificant
• C)Risk exposure can be hedged through foreign exchange contracts or foreign currency options
• D)All of the above are valid reasons

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Definitions:

Herzberg's Two-Factor Theory

A theory suggesting that employee satisfaction and motivation are influenced by two groups of factors: hygiene factors and motivators.

Maslow's Needs Hierarchy

A theory in psychology proposed by Abraham Maslow, suggesting that people are motivated by five basic categories of needs: physiological, safety, love/belonging, esteem, and self-actualization, in that order.

Creative Extent

The range or breadth of creativity and innovation demonstrated in problem-solving or project development.

Two-Factor Theory

A psychological theory proposing that employee satisfaction and dissatisfaction are influenced by two independent sets of factors: motivators and hygiene factors.